Glen Ridge Tax Sales

An interesting piece on tax sales in Glen Ridge, NJ. For those who don't know about Glen Ridge taxes, they are some of the highest in the state. The author provides a nice little primer on the tax sales process.

From the Glen Ridge Paper:
Delinquent property taxes costing residents
By Daniel Hooks

Homeowners who failed to pay property taxes last year in Glen Ridge will have their debts sold next week to private investors, who can charge up to 18 percent interest to homeowners on top of the principal debt.

On June 17, Glen Ridge Tax Collector Donna Altschuler will sell the town’s property tax-related debts to private investors in a tax sale; an annual event practiced by virtually every municipality in the state in an effort to regain monies not collected from homeowners.

“The state actively encourages municipalities to sell their debt because the municipality is responsible for collecting taxes and then paying out money to the board of education and the county,” said Michael Rohal, town administrator of the borough.

“If taxes are not collected, the municipality is responsible for paying off any differences to the board of education and county, and therefore it benefits the town to get rid of debt,” said Rohal.

Private investors will bid on outstanding debts owed to the borough from delinquent property tax payments, and in return will earn the right to put a lien on the properties in question, according to Altschuler.
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When an investor wins the right to pay off the debts to the town, he can also begin foreclosure on the property if he chooses to, though both Altschuler and Conway said that foreclosures are extremely rare.

Caveat Emptor!
Grim